RESIDENTIAL LEASE ADDENDUM

(LATE FEE – ARKANSAS)

I. DOCUMENT HEADER

1. Parties
   This Residential Lease Addendum – Late Fee (the “Addendum”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:
   • [LANDLORD LEGAL NAME], a [ENTITY TYPE] having its principal business address at [LANDLORD ADDRESS] (“Landlord”); and
   • [TENANT LEGAL NAME], residing at [TENANT ADDRESS] (“Tenant”).

2. Recitals
   A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [LEASE DATE] (the “Lease”) covering the real property commonly known as [PREMISES ADDRESS] (the “Premises”).
   B. The Lease requires timely payment of rent and permits the imposition of late fees in accordance with Arkansas law.
   C. The parties desire to supplement the Lease to set forth specific terms and conditions governing late payment of rent.

NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as follows:

II. DEFINITIONS

The following terms shall have the meanings set forth below. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Lease.

1. Addendum – This Residential Lease Addendum – Late Fee (including all exhibits, schedules, and amendments).
2. Due Date – The calendar date on which Rent is contractually required to be paid under the Lease (e.g., the first (1st) day of each month).
3. Grace Period – The statutory period following the Due Date during which late fees may not be assessed, currently five (5) calendar days under Arkansas law.
4. Late Fee – The monetary amount assessed for Tenant’s failure to pay Rent in full by the end of the Grace Period, calculated in accordance with Section III.
5. Late Fee Cap – The maximum Late Fee permitted by Arkansas law, presently the greater of ten percent (10%) of the Monthly Rent or Thirty Dollars ($30.00), or such other maximum as may be allowed by law from time to time.
6. Monthly Rent – The total recurring rental amount due each month for the Premises under the Lease.

III. OPERATIVE PROVISIONS

1. Assessment of Late Fees
   a. A Late Fee shall accrue only if (i) the full amount of Monthly Rent is not received by Landlord on or before the expiration of the Grace Period, and (ii) all statutory conditions precedent to the imposition of late fees have been satisfied.
   b. The Late Fee shall equal the lesser of:
   i. The Late Fee Cap; or
   ii. [PERCENTAGE]% of the outstanding Monthly Rent.
   [// GUIDANCE: Insert “10” in blank above to adopt the statutory maximum. Reduce the percentage if a smaller fee is desired.]

2. Notice of Late Fee
   a. On or after the first day following expiration of the Grace Period, Landlord shall deliver to Tenant a written notice (“Late Fee Notice”) specifying:
   i. The amount of unpaid Rent;
   ii. The Late Fee to be assessed; and
   iii. The deadline to cure the delinquency prior to commencement of eviction proceedings.
   b. Delivery of the Late Fee Notice shall be made in accordance with the notice provisions of the Lease or, if none, by any method permitted under Arkansas landlord-tenant law.

3. Application of Payments
   Unless otherwise prohibited by law, payments received shall be applied in the following order: (i) accrued Late Fees; (ii) outstanding Rent; (iii) any other amounts due under the Lease.

4. Non-Waiver
   Acceptance by Landlord of partial Rent or Late Fees shall not constitute a waiver of Landlord’s right to full payment or any other remedies available at law or in equity.

5. Modification of Statutory Limits
   If Arkansas law is amended to modify the Grace Period or Late Fee Cap, the terms of this Addendum shall automatically conform to such amendments without further action by the parties.

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority
   Each party represents that it has full power and authority to enter into and perform this Addendum and that execution of this Addendum does not violate any other agreement by which it is bound.

2. Landlord Compliance
   Landlord represents that the Late Fee structure set forth herein is, to the best of Landlord’s knowledge, in compliance with all applicable Arkansas statutes, regulations, and ordinances governing residential tenancies.

3. Tenant Understanding
   Tenant acknowledges that Tenant has read and understands the terms of this Addendum and had the opportunity to seek independent legal counsel.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenant to Pay
   Tenant shall pay Late Fees as and when due without demand, except as expressly provided herein.

2. Landlord Covenant to Mitigate
   Landlord shall not assess or collect Late Fees in excess of the Late Fee Cap and shall comply with all statutory notice and grace period requirements.

VI. DEFAULT & REMEDIES

1. Events of Default
   Failure by Tenant to pay (i) Rent within the Grace Period or (ii) Late Fees within [CURE PERIOD] days after written demand shall constitute an Event of Default under the Lease.

2. Enforcement
   Upon an Event of Default, Landlord may exercise any and all remedies available under the Lease, the Arkansas Residential Landlord-Tenant Act, and applicable law, including but not limited to eviction.

3. Attorneys’ Fees
   The prevailing party in any action to enforce this Addendum shall be entitled to reasonable attorneys’ fees and costs to the extent permitted by Arkansas law and the Lease.

VII. RISK ALLOCATION

1. Indemnification
   Not applicable. Nothing in this Addendum shall be construed to create an indemnity obligation not already contained in the Lease.

2. Limitation of Liability
   Liability of Landlord and Tenant with respect to Late Fees shall be limited to the statutory limits imposed by Arkansas law.

3. Force Majeure
   Neither party shall be liable for Late Fees or damages caused by events of force majeure, provided Tenant notifies Landlord promptly and furnishes reasonable proof of such event.

VIII. DISPUTE RESOLUTION

1. Governing Law
   This Addendum shall be governed by and construed in accordance with the laws of the State of Arkansas, without regard to conflict-of-law principles.

2. Forum Selection
   Any judicial proceeding arising from this Addendum shall be brought exclusively in the [COUNTY NAME] District or Circuit Court having jurisdiction over housing matters (the “State Housing Court”).

3. Arbitration
   Arbitration is expressly excluded.

4. Jury Trial
   Nothing herein constitutes a waiver of any party’s constitutional right to a trial by jury.

5. Injunctive Relief
   Landlord retains the right to seek injunctive or other equitable relief, including but not limited to eviction or unlawful detainer proceedings, as permitted by law.

IX. GENERAL PROVISIONS

1. Amendment; Waiver
   No amendment of this Addendum shall be effective unless in a writing signed by both parties. Waiver of any provision on one occasion shall not constitute waiver of any other provision.

2. Assignment
   Tenant may not assign this Addendum or the Lease without Landlord’s prior written consent except as required by law.

3. Successors and Assigns
   This Addendum shall bind and benefit the parties and their respective successors and permitted assigns.

4. Severability
   If any provision of this Addendum is adjudged unenforceable, the remainder shall remain in full force, and the offending provision shall be reformed to the minimal extent necessary to render it enforceable.

5. Integration
   This Addendum, together with the Lease, constitutes the entire agreement of the parties with respect to Late Fees and supersedes all prior oral or written understandings.

6. Counterparts; Electronic Signatures
   This Addendum may be executed in counterparts, each of which shall be deemed an original. Signatures transmitted electronically or by digital signature in compliance with applicable law shall be deemed originals.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Addendum as of the Effective Date.

[// GUIDANCE: Arkansas does not require notarization for a residential lease addendum, but local custom may vary. Add notarization or witnesses below if desired.]